Kim Dotcom Backs Bitcoin Cash

Kim Dotcom, founder of the now-defunct Megaupload, has indicated public support for the newest, yet the oldest, digital currency, Bitcoin Cash.

“Our dream. It’s happening,” he said, referring to a statement by Rick Falkvinge, founder of the Pirate Party, before Dotcom told his more than half a million followers: “Must read: The Bitcoin Cash philosophy.”

That was preceded by a public statement that said “I wonder what happened to Bitcoin Cash BCH on Thursday Nov 9,” a day when the currency spiked in price to new highs.

https://twitter.com/KimDotcom/status/929475801547915264

Dotcom is leading efforts to create Bitcache, a system that links file transfers to bitcoin transactions with the aim of allowing:

“Musicians, filmmakers, media organizations, YouTube vloggers, and bloggers [to] accept payments as low as $1 from their audience,” according to wikipedia.

Bitcoin’s fees, however, have spiked to as high as $20 per transaction, making the above project unworkable for the bitcoin blockchain.

Dotcom, therefore, might be moving it to Bitcoin Cash, which has fees at pennies or less, but we received no response when asking for confirmation of whether the project does indeed plan to do so.

The microstransactions platform won’t have every transaction on the blockchain, with the project breaking bitcoin into bits, usable for payments on the Bitcache platform, not on the blockchain.

Thus payment channels will be employed, but even with those, at $20 per on-chain transaction the project would be very expensive, which may explain Dotcom’s sudden interest in Bitcoin Cash, a currency that has spiked in popularity recently.

It rose from around $300 to a high of $2,799 in the past few days, before finding a stable price at around $1,300 where it has remained for the past 24 hours, suggesting some strong support.

The currency shares the same user base as bitcoin up to August the 1st, with some stating that Bitcoin Cash is the real bitcoin because it adheres more closely to the bitcoin whitepaper.

They plan to scale on-chain to as good as unlimited capacity through sharding and other improvements, while also employing the Lightning Network and other protocols once they are launched.

Their idea is to implement a peer-to-peer, global, permissionless, trustless, nearly free and nearly instant, electronic cash system, following Nakamoto’s breakthrough in preventing double spending through the blockchain.